Talks slash Avista hike requests

A partial settlement announced Friday will cut by almost half a proposed Avista Utilities electricity rate increase in Washington, and slice a natural gas increase by almost 40 percent.

The agreement is not binding on the Utilities and Transportation Commission, which will hold a public hearing on the increases Sept. 30 in Spokane. But all other parties in the case, including the commission’s staff and the attorney general’s public counsel, have accepted the changes.

Avista in January had sought an additional $69.8 million in electricity revenues, which would have boosted consumer rates an average 8.6 percent. The proposed $4.92 million boost in gas revenues would have raised rates an average 2.4 percent.

The plan would have raised the average homeowner’s electricity bill by about $7, and their gas bill about $2.10.

Commission staff and Public Counsel Simon ffitch had objected to much of the company’s proposal, and some of the issues they raised remain unresolved, notably terms of a contract for power from the Lancaster generating station on the Rathdrum Prairie.

Avista spokeswoman Debbie Simock said the company will not be able to recalculate the effect on customer bills until all issues are settled.

She added that the settlement has nothing to do with pending gas rate adjustments to account for sagging prices. Avista will file those changes, expected to lower rates by more than 10 percent, later this month.

Avista Utilities President Dennis Vermillion noted the company generates 24 percent of its electricity using gas.

“Prices for natural gas have decreased substantially, and this reduction in natural gas costs is reflected in the partial settlement agreement,” he said.